JBS to purchase Moy Park in $1.5 billion deal
JBS SA has announced the acquisition of chicken producer Moy Park from Marfrig Global Foods in a US$1.5 billion deal.
Subject to regulatory approvals, including the European Union antitrust authorities, the transaction includes the sale of the entire Moy Park business unit and is expected to be closed between the third and fourth quarter of 2015.
The price includes a cash payment of $1.19bn upon the closing of the sale and the GBP Ł200m net debt at Moy Park.
JBS investor relations officer Jeremiah O’Callaghan said the acquisition was an “important step in JBS’ strategy to grow its portfolio of prepared and convenient products with high value added portfolio”, as well as increasing the company’s geographic diversification, with an expansion European operations.
According to Marfrig, the sale of Moy Park will enable them to have a greater focus in pursuing growth opportunities as identified in its ‘Focus to Win’ strategic plan which includes an emphasis on growing foodservice, especially in the US and Asia. Marfrig also hopes to increase beef exports from Brazil to Asia and the US, pending the lifting of beef import restrictions.
It reasoned that despite Moy Park being a “good business”, it was too focused on the retail segment, while Marfrig wants to increase its foodservice arm.
Moy Park CEO Janet McCollum said: “Moy Park is a strong, growing and profitable company and has benefited greatly from being part of Marfrig Global Foods. We are very pleased and encouraged by this development which is great recognition for Moy Park.
“JBS is the second largest global food business and the largest poultry company in the world with a significant poultry presence outside of Europe. The Moy Park team, together with our dedicated farming partners, will continue to meet and exceed the needs of our customers and consumers throughout the UK, Ireland and mainland Europe providing innovative, top quality products underpinned by the highest standards of animal welfare.”
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